Now the good part. How does it work?
To summarize the entire process, an investor deposits their cryptocurrency to the platform in any of the afore-listed formats accepted by Lavenir. They then make a loan to the platform for that amount of cryptocurrency, and an interest rate is locked in. Loan terms vary from undefined to 365 days, and investors have the option to cash out their payment at any time.
Lavenir’s network of professional traders then uses the investor’s money to trade and make a profit which covers the stipulated interest payment. At the expiration of the loan term, or at a time of the investor’s choosing, the principal cryptocurrency amount and its accrued interest may be cashed out, or the interest may be paid out and the principal amount reinvested, depending on what the investor chooses.
The major types of cryptocurrency trading executed on the Lavenir platform are Arbitrage trading and price forecasting based on price chart analysis.
The latter trading model is self-explanatory, while Arbitrage trading is essentially the instant trading of cryptocurrencies for a practically risk-free profit, based on the exploitation of regional price differentials. When this process involves trading on two exchanges, it is called a two-legged arbitrage, and Lavenir has a network of professionals who are skilled at carrying out this trade.
Profits are shared with investors at an agreed upon interest rate. Interest rates are locked in at the time the loan is made and do not fluctuate. As referenced earlier, Lavenir cuts out the complicated interest formulas, temperamental interest rates and lack of earning guarantee for investors. Using a locked-in rate, actual trading profits made by the platform may fluctuate based on normal cryptocurrency market movements, but higher profit and lower profit days will balance out, and the site and the platform will profit long-term – which is great news for investors.
At this point, it is imperative to point out that this service differs markedly from the type of loan offered on other platforms where investors must purchase a token issued by the site before they can lend, and then hope the value of that token appreciates to make a profit. With Lavenir, investors lend actual coins and receive interest on those actual coins.
Although Lavenir tokens are not needed to invest on the site, Lavenir plans to develop an on-site cryptocurrency and fiat exchange where users can easily buy and sell LVR tokens. The tokens are simply held for ownership of the platform and to receive dividends from trading profits made by the site. A fee will be charged for each transaction made on the exchange, and these fees will also be shared with token holders.
The offered interest rates range from 0.3%-0.5% a day (which aggregates to about 10%-15% per month), and interest is calculated and updated daily. Crucially, investors have the option to cash out their investment and withdraw at any time, a sharp departure from the practice of tying their coins down for a specified number of days which is customary practice elsewhere. This gives investors an extra level of flexibility and trust.
If however, investors wish, they may choose a term for their loan at the time of lending, and the funds will remain on loan until that lending period expires. Investors who choose this option will receive bonus interest on their loan. Investors can have unlimited active loans at any given time. At the end of the loan period (if a loan period is selected), the amount of the investment plus interest earned is automatically credited to the user’s account.
As mentioned earlier, it is possible to make investment deposits on the LVR platform using Bitcoin, Ethereum, Dash, Ripple, Litecoin and Monero, and as the platform grows and evolves, coins may be added to or removed from this list to match the needs of investors.